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Rule 20:10:12:15 Financial criteria for licensing.

          20:10:12:15.  Financial criteria for licensing. At a minimum, for a class A license the applicant's balance sheet must show a positive net worth of $100,000. At a minimum, for a class B license the applicant's balance sheet must show a positive net worth. In determining net worth for a class A or class B applicant, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:

 

          (1)  Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;

          (2)  Accounts receivable over 180 days old;

          (3)  Investments or equities in cooperatives; or

          (4)  Goodwill.

 

          At a minimum, the balance sheet for a class A or class B applicant must show current assets greater than current liabilities. In determining working capital, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:

 

          (1)  Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;

          (2)  Accounts receivable over 180 days old;

          (3)  Investments or equities in cooperatives; or

          (4)  Goodwill.

 

          Source: 24 SDR 190, effective July 15, 1998; 40 SDR 39, effective September 9, 2013.

          General Authority: SDCL 49-45-6(5).

          Law Implemented: SDCL 49-45-7.

 


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